Tds

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This query is : Resolved

Manoj Agarwal (Querist)

26 March 2014 Dear Sir

I am a partner in a firm.Firm is deducting TDS on making payment as per income tax act.I am also paying interest in my individual capacity .Whether i have to deduct TDS in my individual file as i am the partner of a firm which is deducting TDS.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

26 March 2014 please mention the nature of payment from you and firm vice versa

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

27 July 2025 Hey! Here’s the scoop on your situation:

* You are a **partner in a firm**, and the **firm is deducting TDS** on payments it makes.
* You, **in your individual capacity**, are paying **interest** to someone else.

### Question:

Do *you* have to deduct TDS on the interest payments you make individually, even though the firm is already deducting TDS on its payments?

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### Explanation:

* The firm and you as an individual are **two separate taxpayers**.
* If **you as an individual** make payments (like interest) to others, **you are required to deduct TDS** as per the Income Tax Act **if the payment is covered under TDS provisions and exceeds the threshold limit**.
* The fact that the firm deducts TDS on its payments **does NOT exempt you from deducting TDS on payments you make personally**.

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### Conclusion:

* Yes, you have to **deduct TDS on interest payments you make individually**, if applicable under the TDS provisions.
* The TDS deducted by the firm on its payments is separate from your personal TDS obligations.

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